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Coupa Software Reports Financial Results for the Third Quarter of Fiscal 2018

[December 04, 2017]

Coupa Software Reports Financial Results for the Third Quarter of Fiscal 2018

SAN MATEO, Calif., Dec. 04, 2017 (GLOBE NEWSWIRE) -- Coupa Software (NASDAQ:COUP), a leader in cloud-based spend management, today announced its financial results for the third quarter of fiscal year 2018, as follows:

Revenues: Total revenues were $47.3 million, an increase of 34% from the same period last year. Subscription services revenues were $42.8 million, an increase of 39% from the same period last year.

Loss from Operations: GAAP operating loss was $11.2 million, compared to a loss of $5.5 million for the same period last year. Non-GAAP operating loss was $2.4 million, compared to a loss of $2.9 million for the same period last year.

Net Loss: GAAP net loss was $11.3 million, compared to a loss of $6.7 million for the same period last year. GAAP net loss per basic and diluted share was $0.21, compared to a loss of $0.36 for the same period last year. Non-GAAP net loss was $2.8 million, compared to a loss of $4.1 million for the same period last year. Non-GAAP net loss per basic and diluted share was $0.05, compared to a loss of $0.22 per share for the same period last year.

Balance Sheet: Cash and cash equivalents were $219.3 million as of October 31, 2017. Total deferred revenue was $97.6 million as of October 31, 2017.

“Q3 was another strong quarter for Coupa, highlighted by 39% growth in subscription revenues and our third consecutive quarter with positive operating cash flows,” said Rob Bernshteyn, CEO of Coupa. “With our latest product release, we continue to focus on delivering the most innovative and open Cloud platform for business spend and driving measurable customer value. As we look forward, we are well positioned to finish the year strong and continue our rapid growth.”

Business Outlook:

The following forward-looking statements reflect Coupa’s expectations as of December 4, 2017.

Fourth quarter of fiscal 2018:

Total revenues are expected to be between $48.3 and $48.8 million, with approximately $4.5 million from professional services.

Non-GAAP loss from operations is expected to be between $7.5 and $9.0 million.

Non-GAAP net loss per share is expected to be between $0.14 loss and $0.16 loss per share.

Basic and diluted weighted average share count is expected to be approximately 54.7 million shares.

Full year fiscal 2018:

Total revenues are expected to be between $181.5 and $182.0 million.

Non-GAAP loss from operations is expected to be between $19.5 and $21.0 million.

Non-GAAP net loss per share is expected to be between $0.37 loss and $0.39 loss per share.

Basic and diluted weighted average share count is expected to be approximately 53.0 million shares.

See the sections titled “Non-GAAP Financial Measures” and the reconciliation tables below for important details regarding Coupa’s non-GAAP measures.

Recent Business Highlights:

Caterpillar, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, has gone live with Coupa at their first location.

Coupa Release 19 (R19), the company’s third major release of the calendar year, was made generally available in October. R19 modernizes risk management, redefines sourcing optimization, adds travel and expense community intelligence, and enhances the Coupa Spend Management Platform with more than 70 new capabilities.

Coupa announced the general availability of Coupa Open Buy with Amazon Business, which expands customer buying options by giving employees access to the Amazon Business marketplace. The company also announced the addition of Coupa to the Amazon Web Services (AWS) Marketplace, where customers can now quickly discover and subscribe to Coupa Spend Management Solutions.

Coupa announced that senior software executive Mark Riggs joined the company as its first Chief Customer Officer. With more than 25 years of experience, Mr. Riggs has a consistent track record of creating and scaling customer-facing teams across organizations while delivering optimal success to internal and external stakeholders.

In October, Coupa hosted its annual European spend management conference, Coupa Inspire ‘17 in London. Inspire ‘17 featured speakers from some of the world’s leading brands, including Airbus, IKEA, Deloitte, Accenture, Maersk Line, and Pearson.

Conference Call Information:

Coupa will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today.

Parties in the U.S. and Canada can access the call by dialing 888-466-4587, using conference code 4942682.

International parties can access the call by dialing 719-457-2640, using conference code 4942682.

The webcast will be accessible on Coupa’s investor relations website at investors.coupa.com. A replay will be available through the same link. A telephonic replay of the conference call will be available through Monday, December 11, 2017. To access the replay, parties in the U.S. and Canada should call 888-203-1112 and enter conference code 4942682. International parties should call 719-457-0820 and enter conference code 4942682.

Non-GAAP Financial Measures:

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures that exclude share-based compensation expense, litigation-related costs, amortization of intangible assets acquired and related tax effects. Coupa believes these non-GAAP measures are useful in evaluating its operating performance and regularly reviews these measures as it evaluates its business.

Coupa believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Coupa believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Coupa uses these non-GAAP measures in conjunction with GAAP measures as part of its overall assessment of its performance, including the preparation of its annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. The definitions of its non-GAAP measures may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, Coupa's non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Coupa compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. Coupa encourages investors and others to review its financial information in its entirety, not to rely on any single financial measure and to view its non-GAAP measures in conjunction with GAAP financial measures. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.

With respect to Coupa’s guidance as provided under “Business Outlook” above, Coupa has not reconciled its expectations for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because certain items excluded from non-GAAP operating loss, such as charges related to share-based compensation expense, litigation-related costs, amortization of intangible assets acquired and related tax effects, cannot be reasonably calculated or predicted at this time. The effect of these excluded items may be significant.

Forward-Looking Statements:

This release includes forward-looking statements. All statements other than statements of historical facts, including the statements of management and statements in “Business Outlook" are forward-looking statements. These forward-looking statements are based on Coupa’s current expectations and projections about future events and trends that Coupa believes may affect its financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially, including: Coupa has a limited operating history, which makes it difficult to predict its future operating results; if Coupa is unable to attract new customers, the growth of its revenues will be adversely affected; because its platform is sold to large enterprises with complex operating environments, Coupa encounters long and unpredictable sales cycles; the markets in which Coupa participates are intensely competitive; Coupa’s business depends substantially on its customers renewing their subscriptions and purchasing additional subscriptions; risks and liabilities related to breach of its security measures or unauthorized access to customer data; if Coupa fails to develop widespread brand awareness cost-effectively, its business may suffer; and if Coupa fails to manage its recent rapid growth effectively, Coupa may be unable to execute its business plan, maintain high levels of service, or adequately address competitive challenges.

These and other risks and uncertainties that could affect Coupa’s future results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Coupa’s quarterly report on Form 10-Q filed with the SEC on September 8, 2017, which is available at investors.coupa.com and on the SEC’s website at www.sec.gov. Further information on potential risks that could affect actual results will be included in other periodic filings Coupa makes with the SEC.

The forward-looking statements in this release reflect Coupa’s expectations as of December 4, 2017. Coupa undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in its expectations.

About Coupa Software Coupa Software (NASDAQ:COUP) is the cloud platform for business spend. We deliver “Value as a Service” by helping our customers maximize their spend under management, achieve significant cost savings, and drive profitability. Coupa provides a unified, cloud-based spend management platform that connects hundreds of organizations representing the Americas, EMEA, and APAC with millions of suppliers globally. The Coupa platform provides greater visibility into and control over how companies spend money. Customers – small, medium and large – have used the Coupa platform to bring billions of dollars in cumulative spend under management. Learn more at www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.